A recent Forbes article on PNC launching ”numo” a startup fintech within the bank caught my attention as the company has embarked on a new innovative path utilizing the strengths and speed to market of a fintech, yet the depth and knowledge of a bank.
PNC has created a startup program, numo, that functions as an internal startup, complete with a pre-negotiated equity split between PNC and numo employees, said David Passavant, numo CEO.
Most “gig worker” applications assist in getting the worker paid in a timely manner. This is the first gig worker application I have seen that helps the worker calculate their estimated tax burden along with a quarterly payment reminder. This is especially beneficial for workers who have multiple gigs with different employers. They just have all of their gig paychecks directed to their “indi” bank account. With the funds all in one place, it makes it easier to calculate estimated taxes.
The first development has been indi, a mobile phone-based bank account for gig workers. It offers tax calculations, tax savings goals and dynamic adjustments when users save ahead or fall behind. It also reminds them when quarterly taxes are due. The account has no minimum balance and no monthly service fee. It is in testing with numo staff and has a waiting list. The indi account is an FDIC-insured account held at PNC Bank with a Visa prepaid debit card and is available for both iOS and Android. No major US bank had built an account for gig workers, said Passavant, although Mastercard recently introduced real-time payments for gig workers.
Numo is just the first application from the company; a second and third app are under development and are completely different from “indi.” One app is a service for companies which run portfolios of retail properties and the other relates to regulatory technology for financial institutions.
Passavant said numo is using its perspective within the bank to focus on significant tech solutions.
Overview by Sue Brown, Director, Prepaid Advisory Service at Mercator Advisory Group
